Self-Employed
Sally (41)
Sally feels confident in her financial plan but would like an objective financial planner to perform a comprehensive review of her situation. Sally has the expertise and enjoys managing her own finances. She doesn’t necessarily have the time, but she has trouble delegating it to a trusted professional. Her goal is to simplify her financial accounts, reduce taxes, and review cash flow.
Sally is a self-employed social media consultant. She has built a successful online business with significant revenue but has decided to scale back her hours in order to travel. Expected income: $90,000.
Sally has amassed significant savings but her finances lack organization. She’s invested small amounts in many of the companies she’s performed work for in the past. She has a few retirement accounts at multiple custodians and old employer retirement plans. She is currently contributing to her investment accounts but is mostly contributing a significant amount to her cash account each month.
Sally decides to reach out to Assist FP by scheduling a free intro call.
Getting Started
During the call, Sally explained her intentions to reduce her working hours in exchange for more travel. She confessed that she is hesitant to trust another professional with her finances due to poor experiences with financial professionals in the past. We understood and explained how we operate differently than most financial professionals. We showed Sally our Financial Huddle package and how it would allow her to work with a fiduciary financial planner while continuing to manage her own personal finances. Sally decided the one-time engagement without a future commitment was the perfect fit for her current situation and signed up to work AssistFP.
How did Assist FP help?
Once Sally’s goals were clear, we began organizing all of her financial accounts and reviewing her cash flow.
Assist FP presented a plan to consolidate as many of the accounts as possible. This is a crucial step for ease of management if a client chooses to manage their accounts themselves.
Assist FP reviewed current investment allocations in Sally’s accounts and recommended a slightly more conservative approach while significantly reducing the cost of the funds in her account.
Assist FP revealed a large concentration of her investments were in one single company and presented a plan to diversify her overall portfolio without incurring a large tax obligation.
Assist FP recommended opening a self-employed retirement plan to help reduce her taxable income this year and increase her savings.
Assist FP educated Sally on the benefits of a Roth IRA to diversify the tax status of her retirement accounts but explained how it would not reduce her taxable income as her goals stated. She hadn’t been under the income limits in many years to be able to take advantage of the Roth IRA in the past.
Assist FP presented their recommendations to Sally, but it is Sally’s responsibility to act on any of the suggestions. Assist FP will not monitor any of her accounts on an ongoing basis.
Sally felt reassured that she could comfortably reduce her income and travel more without risking her financial future. Sally has saved a lot of time dealing with her finances due to Assist FP’s recommendations reducing unnecessary complexities. She mentioned the possibility of working together ongoing in the future and we welcome the opportunity to assist Sally down the road in whichever capacity she is most comfortable with.